The Department of Education imposed sweeping layoffs as a first step toward dismantling the agency, inflation cooled more than expected in February, and the federal government appears to be on the verge of shutting down. Here's what else you might want to read this week:
"Crypto's Day of Reckoning in the Senate"
The Senate Banking Committee is expected to pass a bill Thursday that would create a regulatory framework for stablecoins. Amendments on anti-money laundering, consumer protection, and foreign stablecoin issuers have been key points of contention. Backed by Republicans, the bill is exposing a rift among Democrats, with ranking member Elizabeth Warren, D-MA, opposing it and Sens. Angela Alsobrooks, D-MD, and Mark Warner, D-VA, in support. Other Democrats were undecided heading into the vote, which is a crucial test of bipartisan support for crypto legislation and could shape financial policy in the future.
Meanwhile, banks are growing increasingly concerned about the effort, which some experts say is an existential threat to the industry.
"Trump to Nominate Bowman for Fed's Top Bank Cop, White House Official Says"
It's welcome news for community banks, who've been pounding the table for Governor Bowman's nomination since Governor Michael Barr announced in January he would step down. A former banker and state banking commissioner, Bowman has repeatedly warned against insufficient measures to stop inflation and was the only FOMC official to vote against the 50-bps rate cut in September. Since the cut, year-over-year inflation had risen for four consecutive months before cooling in February.
"Trump Plans to End CFPB Despite Reviving Work, Official Says"
The Trump administration was discussing plans to shut down the CFPB as recently as March 6, even as a court decides whether it can do so, an employee in charge of layoffs at the agency testified. The court is now weighing whether to intervene, with Judge Amy Berman Jackson expressing concerns that the CFPB might be dismantled before she gets a chance to make her decision. Jackson is reportedly leaning toward an injunction that could prevent the administration from unwinding the agency.
"Stop Being So Friendly with Friendly Fraudsters"
Fourteen percent of fraud and risk leaders at midmarket financial institutions say that friendly fraud is the most frequent type of fraud they deal with, a new survey found. Meanwhile, in a separate survey, 40% of Gen Z respondents and 39% of millennial respondents admitted to friendly fraud. Banks need to combat these practices more aggressively by balancing customer service against tougher policies for investigating disputes, especially when it comes to frequent offenders, this article says.
"Banks' Commercial Clients Face Whiplash Over Trump Tariffs"
President Trump's on-again, off-again tariff policies are creating headaches for banks' business customers, which may end up having to reconfigure their supply chains and manage higher input costs. But the biggest problem is uncertainty: Companies can't plan or make capex decisions until they know what the policies are.
"The Kids Are Alright: Youth Accounts Map a Promising Path Forward"
Thanks to their parents, kids are getting bank accounts earlier than ever. New research indicates that 35% of Gen Z and millennial parents are opening accounts for their children before they turn six, and 46% are opening accounts for kids between the ages of six and 12. It's an obvious opportunity for banks, but targeted messaging and products will be key to retaining younger customers as they get older.
"Trump Family Has Held Deal Talks With Binance Following Crypto Exchange's Guilty Plea"
President Trump's family members are reportedly discussing taking a stake in the U.S. arm of the Binance, which was fined $4.3 billion after pleading guilty to violating anti-money-laundering rules in 2023. Changpeng Zaho, the founder of the exchange and Binance's biggest shareholder, served four months in prison on a related charge. Zaho is now seeking a pardon from Trump, which would enable Binance to re-enter the U.S. market and do business overseas with fewer restrictions.
"Companies Brush Off Plans for Industrial Banks"
With the Trump administration and acting FDIC Chair Travis Hill embracing innovation and deregulation, some industry players are growing concerned about a wave of industrial bank charters. Two ILC applications have already been filed since Trump won the election, both from car manufacturers.
"Your Silent Competition Is Winning: Are You Even in the Game?"
Your customers aren't as loyal as you think, one marketing expert says. He recommends that community banks engage customers more aggressively, warning that big banks, fintechs, and digital financial platforms already are-and with much success.
"Common Use Cases and Risk Management for AI in Banking"
Artificial intelligence has the potential to transform banking, but it introduces a host of novel risks. Two experts explain how banks can mitigate them by making changes to their governance frameworks.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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